The role of AI in the finance industry, particularly in Private Equity, Hedge Funds, and Investment Banking, is pivotal. Its integration has revolutionized the value of portfolios. With its ability to swiftly analyze vast amounts of data, AI empowers investors to make well-informed decisions. While some may be hesitant to entrust their finances to AI, its instant feedback and accurate stock predictions can be a game-changer.
Prestigious investment firms like BlackRock, J.P. Morgan, and Morgan Stanley all use AI to some extent. They use AI mostly to assist with asset management and help their clients make the best choices. It seems as if AI’s entrance into the financial market is inevitable. The U.S. Securities and Exchange Commission recently approved Nasdaq’s AI trading platform. This new platform speeds up the frequency of orders and will give people better ROIs (Return on Investments) overall. You might wonder why an AI program is guaranteed to give a better ROI. An AI program will work 24/7 trading stocks, giving you the most bang for your buck. AI will revolutionize the whole financial industry.
Artificial intelligence has the computing power to quickly analyze contrasting data sets and provide a quick, reliable solution that best suits the company’s strategy. Instead of spending days and hours to come up with a solution, Artificial Intelligence can do that in minutes. Furthermore, a job in finance revolves around repetitive spreadsheet work, like extracting data and organizing certain things. Artificial intelligence can do that for the finance industry, allowing companies to use the human brain better. AI could also help rush make deals and decisions when the stock market closes without much error. High-pressure situations often cause mistakes.
Artificial intelligence can also help manage risk and better audit a company’s finances. AI can quickly scan financial statements and determine what could threaten a company’s security. Generally, auditors should be foolproof, but when humans get tired, they can misread a zero, which could mess up many things in the financial industry.
Work Cited
Matthews, Laura. “Nasdaq Gets SEC Nod for First Exchange AI-Driven Order Type.” Reuters, 8 Sept. 2023. www.reuters.com, https://www.reuters.com/technology/nasdaq-gets-sec-nod-first-exchange-ai-driven-order-type-2023-09-08/.
McKendrick, Joe. “Artificial Intelligence Opens Up The World Of Financial Services.” Forbes, https://www.forbes.com/sites/joemckendrick/2023/02/24/artificial-intelligence-opens-up-the-world-of-financial-services/. Accessed 13 June 2024.
